This seems excessively low given that the majority of the fund is invested in: I dont even know anybody who knows anybody who has. They tend to be much lower cost due to economies scale We had a number of these at my company. I know that they're apparently better, especially for tax loss harvesting, but the auto-investing of Mutual Funds simplifies things further for me. Any advice would be very much appreciated. 100% FZROX. And since FSKAX has been around since 2011, more data about its performance exists. Apple Inc. (at 5.6% of the fund, this stock is the largest holding in FZROX). I feel like the main thing missing here is the correlation between the two. Thanks again. The Zero funds use securities lending to make up for the lack of a fee, which is actually periodically profitable to Fidelity and ends up counting as an inverse fee you can see that FZROX actually performs a couple of basis points better than FSKAX before fees, for example, which you'd not expect otherwise. Bogleheads.org 5 3 more replies MONGSTRADAMUS 10 mo. The fund has returned 11.66% over the past three years and 11.79% over the last decade [2023]. And I do contribute to this as a first-priority. I guess it's easier to "set it and forget it" with them over ETFs but reinvesting manually with ETFs aren't too big of a hassle every month. Press J to jump to the feed. Neither; Ill take the ETF version. Created in 2018, FZROX, which holds about 2,800 stocks, is a large blend fund that invests its assets in common stocks included in the US Total Investable Market Index. Both, by virtue of being index funds, are likely a good (and cheap!) Currently i have fidelity as my trading account. Tax Loss Harvesting with Fidelity: A Step by Step Guide. Now I'm looking back at the TDF option and getting my wires crossed. This is the risk of a company going bankrupt or a borrower defaulting or being downgraded. Scan this QR code to download the app now. FZROX is appealing to many investors since there are no fees or expense ratios attached to the fund, and theres no minimum investment to get started. VFIAX vs. VTSAX: Which Vanguard Mutual Fund Is Right for You? Required fields are marked *. Both are low-cost mutual funds that invest in large-cap stocks. An index fund portfolio is also generally more tax-efficient than an actively managed portfolio. And the fund doesnt come with any fees or a minimum investment, so its a good fund for the average investor or for somebody who's just getting started in the stock market. The Vanguard account is for all the new money and opened it, so that i can use automatic investments and use their mutual funds without any capital gains. I think if the difference in taxes-saved in the ETF portfolios were substantial enough, there wouldn't be this much of a debate, right? Vanguard should be the recommendation. Required fields are marked *. The following are FSKAX strengths from our perspective: FSKAX 3-year return is 18.36%, which is higher than the 3-year return of the benchmark index (Dow Jones US Total Stock Market TR USD), 16.77%. 4 nozzery 10 mo. What do you think? As of March 2023, FSKAX has $66 billion in net assets and about 4,000 different holdings, while FZROX has $12.3 billion in net assets and about 2,800 stocks. August 01, 2021 Bogleheads forum post: Re: Fidelity Total Market in taxable - FZROX (ZERO) vs. FSKAX (Total Market) SmackDown, Tubes. Your email address will not be published. My FBGRX investment is down about 9% since I bought it. If Fidelity decides to screw people over via FZROX, they'll do it with FSKAX too. Have any insight you could share as to how the fund's expense ratio could be less than the expense ratios of the funds it holds? Like FSKAX, the fund invests in a variety of markets, but here are its primary sectors: FSKAX vs. VTSAX: What Is the Best Total Stock Market Index Fund? This is consistent with the Bogleheads approach. Annual Return n/a Expense Ratio 0.00% Why We Picked It Fidelity Total Market Index Fund (FSKAX) 5-Year. FSKAX 5-year return is 17.69%, which is higher than the 5-year return of the benchmark index (Dow Jones US Total Stock Market TR USD), 16.15%. I stumbled across this subreddit and to my surprise almost every philosophy about investing that Jack Bogle and other Bogleheads believed aligned with mine. 38% - FTIHX. They have a patented technique via integrating their etfs with their vanilla mutual fund of the exact same holdings that magically and legally (some talk of future regulations) do away with distributed capital gains. (2023). Take a look at them for more info. Decided to keep the 401k even after I left because it's cheap, easy, and provides additional liability protection in my state. The fees are compounded over time, but over 30 years, the fee would be about 0.69% of the total value of your portfolio. FZROX vs. VTI. Plus, I already check my portfolio often, even with the tiny amount I have in there, so that's a +1 for ETFs. 2%? And a partial transfer of all assets besides FZROX and the other free funds would work just fine too. As to Vanguard vs Fidelity, use whatever you're more comfortable with. FZROX charges no fee, while FSKAX charges 0.02%, or $2 for every $10,000 invested. As far as knowing whether Fidelitys dividend approach makes a difference, just look at the returns. A total stock market index fund is a mutual fund or an exchange-traded fund (ETF) that tracks the entire stock market across a country or region. Once you've got your IPS situated and you've determined whether you prefer ETFs/MFs, you should pick the brokerage that best suits your investing needs based on the funds you want to invest in. Fidelity is not getting a single dime from me for anything, though I have multiple accounts with them. You aren't going to be paying more than .045% for TDF funds. There has to be a catch I'm not seeing? Compared to FSKAX (3,974 US) and FTIHX (5,079 ex-US), it still feels like I would be giving up significant diversification. My current situation is that my 401K is maxed, IRA is maxed, EF is well funded. The expense ratios for the Fidelity Mutual funds are exceptionally low. Im about 20 years from retirement and I dont want something high maintenance on my end. Just for some perspective. If I am not mistaken most lifepath ones including a small percentage of small caps also. Total stock market index funds are always a good investment strategy, and FSKAX has delivered solid returns over the last 10 years. Tax-Loss Harvesting with Fidelity: A Step-by-Step Guide, How to Do a Backdoor Roth IRA at Fidelity. FSKAX tracks the Dow Jones US Total Stock Market Index, and it currently has nearly $66 billion in net assets, as of March 2023. Press J to jump to the feed. New comments cannot be posted and votes cannot be cast. FSKAX vs FZROX Fund Comparison . How? Bogleheads forum post: Fidelity Total Market in taxable - FZROX (ZERO) vs. FSKAX (Total Market) SmackDown, LadyGeek. The fund has returned 11.66% over the past three years and 11.79% over the last decade [2023]. Morningstar gave this fund three (out of five) stars in comparison to the 1,237 funds within its category. Hey everyone i am opening my roth IRA and i just want to ask if 60/40 FZROX and FTIHX is a good idea? But it doesnt affect compounding. All my 401(K) and IRA is in Fidelity and it is setup for auto-investing in FZROX and FZILX. Do you ever second-guess yourself for not investing in a certain stock? You also don't need to choose just one. Im a fidelity investor but opted for neither based on the dividend schedule. :(, Assuming all Fidelity accounts, HSA or Roth IRA: FZROX/FZILX and Taxable: ITOT/IXUS, VTI/VXUS or VT. Straighten out your financial life today! I like ETFs over MFs in taxable, especially since you can buy fractional shares at Fidelity. Fidelity is a popular brokerage because they have low-fee Mutual Funds and offer fractional trading of ETFs from third-parties (e.g., Vanguard, Blackrock / iShares, etc. (VTSAX etc) because I believe those Vanguard funds come with a transaction fee on Fidelity but I might be wrong. So when you get assigned. How efficient has the ETFs been for you in your taxable account? Currently i have fidelity as my trading account. (0.015% for FSKAX, 0.025% for FSNAX and 0.06% for FTIHX) so I might end up just sticking with the funds rather than the Vanguard ETFs, just for simplicity sake. This is for my Taxable Account after maxing out 401(K) and Roth IRA. If I had access to that kind of TDF in my employer-sponsored account, I'd invest in that 8 days/week. I prefer Vanguard ETFs as they are perfectly balanced for my needs. Total stock market index funds are a great option if you're looking for new investment opportunities, and they're a great way to diversify your investment portfolio and improve your tax efficiency. (2023), SPAXX vs. FZFXX: How Do They Compare (2023), FXAIX vs. VTSAX: How Do They Compare? I created a general investment account and a Roth IRA account, and deposited $100 in each respectively. Youll notice that the funds top 10 performing stocks closely mirror VTSAX: The fund invests in a wide variety of markets, but its primary sectors are: The following chart highlights some of the main differences between FSKAX and VTSAX, as of March 2023. They defer to ITOT. If you're a big Vanguard fan and you like slightly higher returns on a more established fund, go with VTSAX. Haha I love it, don't give an inch! But that really has no bearing on where you keep your accounts now. I just got back from a meeting with a Fidelity consultant and could use some further guidance. At the end of the day, it really comes down to your investing plan and the investment brokerage you prefer. All of my accounts are in Fidelity so Id like to stay there. I have huge respect for Vanguard, just chose Fidelity for Ease as my 401(K) is in Fidelity too. Or should I not bother with the whole thing and just leave my portfolio as it, buy, hold and sail off into the sunset? And why? A solid summary, Jamie. Other newer brokerages (e.g., M1 Finance) seem to be well-liked. I was under the impression, as FSKAX and VTSAX follow the same index. The following are FSKAX strengths from our perspective: You may also want to check out the following FSKAX comparisons that investors often look for on Finny. If you are investing in a taxable account, the Vanguard fund is likely slightly more tax-efficient due to its unique ETF share class and its ability to flush capital gains out of the portfolio.. The Fund invests at least 80% of its assets in common stocks included in the Dow Jones US Total Stock Market Index, which represents the performance of a broad range of U.S. stocks. Easy argument to make to the IRS that theyre not identical. FSKAX has a lower rate of return over the last five years at 17.98% compared to FXAIX'S 18.52% returns for the same period. August 09, 2021 and subsequent posts. If you want quarterly dividends, thats fine. ), (2) Move over to Vanguard completely (And why? Which has performed better in your portfolio? Unlike VTSAX, there is no minimum initial investment, and its expense ratio is 0.015%. At 10 years, an index fund is outperforming 80%+ of its peers. FNILX pays once a year, last price was $0.131 per share at a share price of $11.01. FSKAX + FTIHX may still be cheaper - at 70/30, you're paying just under 3 basis points. Fbgrx investment is down about 9 % since I bought it about 20 from! 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